View more on these topics

Brown aims to discourage pension saving, claims Altmann

Pension experts have accused the Government of actively discouraging pension saving to encourage consumers to carry on spending and maintain a buoyant economy leading up to the next general election.

Speaking at last week&#39s Money Marketing Live conference in London, independent pension consultant Ros Altmann claimed Chancellor Gordon Brown is deliberately making pensions an unattractive option for lowerand middle-income groups.

She believes the Chancellor wants to see more growth from consumer borrowing to fuel the economy.

Altmann said IFAs advising clients to start a pension rather than another form of investment to fund retirement may risk clients misbuying because of the impact of means-testing.

Informed Choice and Sofa chairman Nick Bamford told the session on Gearing Up for A-Day that the Chancellor had robbed more pensioners of their money than Robert Maxwell.

Altmann said: “If you think that the Government really wants people to put money into pensions, you are wrong. The last thing this Government wants is for everyone to stop spending and start saving. Anyone advised into a pension at the moment will be misbuying.”

Earlier in the day, Legal & General pensions strategy director Adrian Boulding said spending rather than saving means more VAT receipts and more jobs created in the economy. He said: “Brown thinks if he gets people to save more, it will increase tax relief, reduce the amount of money in the economy and lead to a short-term rise in social security payments. Spending money now means more VAT receipts and more jobs paying more income tax.”

Recommended

Current account mortgage debt fears

An Aberdeenshire IFA is calling for lenders to toughen up on borrowers who do not stick to their current account mortgage repayment plans. Geissler Financial Services adviser Wolfgang Geissler says borrowers are not being made aware of the risks attached to current account mortgages. He says the products have become popular with cash-rich local oil […]

Stop EU inflicting more damage

IFAs must be looking skywards and asking whatever god they worship when the PI nightmare is going to end. The screw is to be turned tighter still by the EU. From 2006, IFAs doing both insurance and investment business will have to have £1m PI coverage to comply with the insurance mediation directive and a […]

Rate of change

Still on the trail of identifying key issues emanating from this year&#39s Budget and Finance Bill, I would like to turn my attention to the introduction of a minimum rate of corporation tax in respect of profits paid out as distributions (usually in the form of dividends) to other than corporate shareholders, in most cases, […]

Insurers&#39 duty is to protect clients, not themselves

Isn&#39t it ironic that in an industry which is as closely regulated as financial services, the concept of duty of care is so often blatantly lacking. As an IFA, I have almost now become used to seeing the business introducer and, more important, the client being left in the corner while the insurance company undertakes […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com